Improvind the JK Uwezeshaji Fund

Community Investment Tax Credit
The Government is committed itself to promoting enterprise for all in the country through providing affordable credits. The KJ Uwezeshaji Fund and others are designed to advance this initiative. In order the initiatives to provide affordable credits to economic activities of the disadvantaged Tanzanians, private sector participation is very important.
Due to the high need for credits from SMEs, the JK Uwezedshaji Fund is not enough to carter for the credit requirement by Tanzanians. The Government only can not afford to provide enough fund, so we need to design measures that will attract private sector to contribute to the Uwezeshaji Fund.
In order to attract private sector to contributing seed funds to the JK Uwezeshaji Fund, the Government should design specific policy to enable commercial banks and other companies to contribute to the fund.
For example we can design what is called Community Investment Tax Credit for banks and other companies that will contribute to the Uwezeshaji Fund. In this respect one option could be that funds that private companies will contribute to the Uwezeshaji Fund will not be included in the calculation of the companies’ taxable profit.
Proposal
Can we in this financial year design a tax measure that could attract private sector to contribute money to the JK Uwezesdhaji Fund. One of the tax intervention measures is to provide for the contributed amount when calculating a company’s taxable profit, called Community Investment Tax Credit.
Your views and comments are welcome